HIPAA Audit Costs Broker 15,000 Life Group – $1M+ in Revenue
Resources to help you – HITECH Survival Center
I was told a story yesterday by a compliance expert on the P&C side of the business that I had not heard yet as it is not public.
A broker in a state I cannot name (as this is not yet public) has lost their largest account, a 15,000 employee county, due to the fact that they failed their audit as a Business Associate. In fact they flunked so badly they were not allowed to try and remedy the issues as they were so egregious.
The loss in revenue was over $1 million
So another way to look at non compliance is like flushing money down a toilet. The lack of serious attention and work will not only hurt your business reputationally, not be covered by E&O but will nail you in the pocketbook as well.
Look to larger governmental, governmental contractors, healthcare and legal entities to start doing more audits of their BA’s now as your compliance – or lack thereof – can threaten their contracts and businesses.
Are you having fun yet with HIPAA HITECH?
How about an unprotected census sent to your office damaging your business?
Are you taking these early warnings seriously? And your E&O doesn’t even protect you..
Tags: brokers, Employee Benefits, Healthcare, hipaa, hitech
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January 31, 2010 at 7:59 pm
Brokers, accountants and other plan service providers shouold consider their obligations not only under HIPAA, but also FACTA and state data breach and identity theft laws. In deciding how to comply, business associates and the covered entities also should carefully weigh the adequacy of their complaince choices. If called upon to defend a breach, for instance, consider whether the effort to minimize compliance costs might reflect as a lack of adequate committment to compliance which allowed if not invited the breach.
January 31, 2010 at 9:11 pm
A point very well taken…thanks